TMI Blog2015 (6) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order of the Ld. CIT(A) holding that the activity of the assessee of purchase and sale of the said land was not an adventure in the nature of trade as alleged by the Assessing Officer. - Decided in favour of assessee. - ITA.No.1778/Hyd/2014 - - - Dated:- 13-5-2015 - Shri P.M. Jagtap and Smt. Asha Vijayaraghavan,JJ. For the Petitioner: Mr. Rajat Mitra For the Respondent: Mr. V. Raghavendra Rao ORDER PER P.M. JAGTAP, A.M. This appeal is preferred by the Revenue against the Order of the Ld. CIT(A)-IV, Hyderabad dated 12.09.2014 and the grounds raised by the Revenue therein read as under : 1. The learned CIT(Appeals) erred both in law and on facts of the case. 2. The Ld. CIT(A) ought to have appre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of ₹ 1,16,917 including income from other sources of ₹ 16,917. As noticed during the course of search conducted in the cases belonging to Mr. Venegalla Anand Prasad group, the assessee had sold a plot of land located at Dundigal (V), Qutubullapur (M), Ranga Reddy District to M/s. Varun Construction for a sum of ₹ 1 crore under an agreement of sale with possession cum Irrecoverable General Power of Attorney on 12.03.2007. As claimed by the assessee, the said land was agricultural land in terms of section 2(14)(iii) and since it was located at Dundigal (v) beyond 8 KM of any Municipality and she had carried out agricultural operation on the said land, the sale thereof did not give rise to any capital gain chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the A.O. under section 143(3) read with section 153C, an appeal was preferred by the assessee before the Ld. CIT(A) who identified the three issues involved for consideration in assessee s case and decided the same as under : Whether the transaction was an adventure in the nature of Trade ? 7. The Assessing Officer had noted in his order that the appellant had also disclosed STCG on sale of property at Deshmukh Village in AY 2007-08 and on sale of land in Krishna District in AY 2006-07 which showed that the appellant was frequently engaged in buying and selling of land. It is true that the appellant has sold these lands. However, merely two transactions of sale cannot turn the appellant into a real estate dealer. There is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w in the case of Bhavya Constructions P. Ltd. The land in this case was located at Bowrampet village, under. Qutbullapur Mandal and had also been sold to Varun Constructions. The ITAT had held that the Assessing Officer had not been justified in rejecting the MRO certificate and entries in the pahanis without proper evidence. 14. The facts in the appellant's case are identical. The land was located at Dundigal village falling within Qutbullapur Mandal. The land was classified in the Revenue records as agricultural land. The appellant was in possession of pattadar passbooks. The nature of the crop and other details were specified in the pahanis. The land was sold at the same time as that in the case of M. Vijaya. The land was descri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Tribunal in the case of Smt. M. Vijaya and others (ITA.No.806/H/13 etc.) wherein a similar issue is decided by the Tribunal in favour of the assessee. A copy of the said order of the Tribunal is also placed on record before us and perusal of the same shows that after discussing all the relevant aspects of the matter in detail in the light of various judicial pronouncements, the Tribunal has summarized its conclusions in paragraph Nos. 36 and 37 of its order as under: 36. In view of our above discussion, in our opinion, the land is not situated within the Qutubullapur municipality, but, the same situated in the Dundigal village and the evidence brought on record suggest that the land is an agricultural land, hence, it is not li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, in such circumstances, in our opinion, such transfer like the case before us cannot be considered as a transfer of capital asset or the transaction relating to sale of land was not an adventure in the nature of trade so as to tax the income arising out of this transaction as business income. 4.1. As the issue involved in the present case as well as all the material facts relevant thereto are materially similar to the case of Smt. M. Vijaya and others (supra), we respectfully follow the decision of the Coordinate Bench of this Tribunal rendered in the said case and uphold the impugned order of the Ld. CIT(A) holding that the land in question being agricultural land situated beyond 8 K.Ms from the limits of Hyderabad Municipal Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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